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What, exactly, does a bankruptcy court do?

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    What, exactly, does a bankruptcy court do?

    Like the title says, what does the court actually do?

    For example, when I submit my paperwork, I know that the court sends notifications to all of my creditors. But what does it do after that? Does it investigate? Does it look over every single account? Does it look over taxes and bank accounts?

    Or does it just act as a mediator between the debtor and creditor, and lets the creditor do their own investigations?

    I'm just curious as to what the process is like.
    6/12/09: Filed Chapter 7
    7/21/09: 341 Hearing (went very well)
    9/28/09: Discharged
    10/2/09: Case closed!

    #2
    You will be assigned a bk trustee. The trustee will handle the nuts and bolts of your case. They will verify that your paperwork is in order and that you've obtained the required counseling certficates.
    They will hold the 341 meeting and ask for clarfication or documentation if they feel it necessary. How indepth they investigate will depend on the individual trustee. Like anything else in life, some are more through than others.
    If your creditors have an objection, they'll need to file for an adverserial proceeding separate from the 341 meeting.
    If all is in order and 60 days from the the 341 meeting, a bk judge that has been assigned your case will issue a discharge order.

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      #3
      The BK court, is the objective arbiter of the BK process. The trustee is assigned to represent your creditors collectively. When ever there is any dispute or legal issue, the BK court (the judge) is the one who will decide the issue. In 90% of BK cases, the court (the judge) does nothing.

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